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"Travel Alert" for use of Debit Cards in Italy

Hi all, I spoke with my bank about using our debit card while away in Italy, and she said that our bank (a local small one), has disallowed use of debit cards (even with the MasterCard logo) at signature-required locations in Italy. We've been told we're okay using the card to dispense cash at ATMs, but apparently because of fraud in Italy this new policy has been instated as of 2 days ago. Just wanted to let my fellow travelers know--have a backup if you plan to use debit cards as credit cards at retail locations in ITaly! Cheers, Kate

Posted by
7737 posts

Thanks for the heads up. This is a good time to remind people that there's no good reason to use a debit card for purchases but there are good reasons to use a credit card instead. Using a credit card provides you some protection in case something goes wrong with the transaction. Using a debit card pulls the money right out of your checking acount and is much harder to fix if there's a problem. Happy travels.

Posted by
9099 posts

I use my debit card every chance I get for purchases overseas, mostly for small ticket items. Except for the occasional chip & pin issue, I haven't run into any problems. For me the convenience out weighs any "dangers". I check my balances online every night, so if there are any shenanigans I can nip in the butt very quickly.

Posted by
17 posts

"Seattle" Mike: Good point! Did you find that most locations accept American Express? Their protection benefits are phenomenal, I've found. I had an issue once while traveling for business--a cabbie charged me multiple times for one trip, and Amex resolved the issue quickly. "NY" Mike: The bank said they would actually reject any purchase requests made with my debit card at signature required locations, disallowing any purchases. So even if I wanted to use my card, it wouldn't work. I just wanted to clarify that for any travelers reading this--best call your bank before heading to Italy to make sure their policies are/are not similar! Have a lovely day all, Kate

Posted by
9099 posts

It shouldn't be an issue for me, my debit card is with one of those big bad banks. So they can handle fraudulent charges more than those smaller FIs. They can just take it out of the CEOs bonus;)

Posted by
1829 posts

Have had problems using Amex in Italy, even when the places had Amex stickers in the window. Most places seemed happier with Visa or Mastercard.

Posted by
7737 posts

I check my balances online every night, so if there are any shenanigans I can nip in the butt very quickly. Um, NY Michael, I think you mean "nip it in the bud." LOL. And FWIW, I've heard the same thing about Amex. Few places in Italy accept it. Same with the Discover card. Happy travels.

Posted by
11613 posts

Sad but true, Amex is not the preferred card in Italy - they charge a higher commission fee and they are relentless in investigating customer complaints (I've had a couple). On the other hand, they charge foreign transaction fees that can add up quickly.

Posted by
17 posts

Thanks for the head's up regarding American Express. We'll be sure to take a MC or Visa instead!

Posted by
32173 posts

Kate, I NEVER use my debit card anywhere in Europe for POS transactions, even though it's a "Chip & PIN" card, for a couple of reasons: > As Michael stated, once the money is out of the account, it may be difficult and problematic to get it replaced. > My card is with a small credit union, and I'm not sure the data network is set-up to allow POS transactions overseas. It works great for ATM withdrawals, and is my primary "cash" card. > The possibility of fraud, which your Bank is seemingly having a problem with at the moment. I use cash for a lot of my day-to-day purchases, which seems like the easiest solution. I only charge larger amounts such as Hotel bills or car rentals. As the others mentioned, American Express card are not widely accepted in Europe, except at more "posh" Hotels and other tourist facilities. Visa or MasterCard are a much more useful form of payment! Cheers!

Posted by
4152 posts

It's a good thing you found that out before you left for your trip. We usually only use our debit cards to get out cash but before my next trip I'm going to check these rules with my bank just so I'll know for sure if I can use my card if needed for other things. Thanks for the heads up. Donna

Posted by
17 posts

Okay, so here's another question: How do I know if my credit card has a chip in it? Is it necessary to carry a card that has a chip? Or will most retail locations in Europe accept credit cards without? Thanks all. You've been super helpful! Kate

Posted by
11247 posts

As you can imagine, living here we do a lot of transactions by cash and card. I have not heard a thing about fraud problems you mention, Kate, but then I am a mere user like yourself, not privy to banking industry insider info. I can tell you this: - Debit card works like a champ everywhere I go. We have the no fee one from Chas. Schwab. - Cap One CC works like a champ everywhere, never declined - AMEX, where accepted, gives me trouble. Most of the time AMEX rejects the transaction in an attempt to "protect" me. So I have to step aside and call AMEX and tell them to release the hold on my card. This happens even though I have told them we are here long term and it is a freakin' gold card.
- Chase Bank Visa is a pain in the rear. I cannot count on it even though I have reported we are abroad time-after-time. Michael's advice to check online daily is excellent and something my in-house accountant (read DH) does.

Posted by
9462 posts

Kate in answer to your last questions a credit card with a chip literally has a (usually gold) chip implanted on the face of the card. The size of your thumbnail. American cards very very rarely have chips. Yes, most retail outlets will accept chip-less cards. They will swipe your American card. Where you will run into trouble is at automated machines for transport tickets, at gas stations, toll booths, etc. they normally only accept cards with chips. In those instances you need to find a counter with a human who can swipe your card.

Posted by
55 posts

We just returned from our vacation to Rome, Florence and Venice. In each city, if we presented our American Express card first and were always asked if we had another card such as VISA or MasterCard. So we began using our VISA. We were almost always offered a discount if we would pay in cash. If the purchase was insignificant - such as scarves, purse, leather jacket at the Florence Market, we used cash. Otherwise, we liked the protection we felt using a credit card. We only used our debit card at the ATMs. So far, so good. Thankfully our credit union VISA charges only 1% on purchases which is why we used it instead of my big bank MasterCard that would have charged 3%.

Posted by
2349 posts

I've heard from someone at a smallish credit union in Indianapolis that they block card usage in Illinois!

Posted by
1626 posts

I've had several instances with my corporate Visa where my card ended up being fraudulently used some city I'd never been to. In both cases Citibank contacted me to see if I'd made these charges, which had occured shortly after a business trip where I would have used the card for hotel, car rental, gas, or restaurant. My best guess is that at a restaurant, someone swiped or made a copy of the card information then sold it.
In Europe if the debit card I'm using in my possession, I might use the debit(ATM, ticket machine, toll both, gas, etc.) But if at a restaurant where the wait staff takes the card someplace else to swipe and it's out of sight, I always use a credit card instead. Even if you have protection with a MC debit card, think of the nightmare on your hands if someone used your debit card for a large purchase and wiped out a majority of the funds planned for ATM withdrawal in Europe. Even if you contacted your bank to report fraud, that may not mean the funds would be replaced immediately.

Posted by
9099 posts

"...Even if you contacted your bank to report fraud, that may not mean the funds would be replaced immediately...." That's why it's recommended that folks bring along a second debit card plus emergency cash to hold you over until it can be straightened out.

Posted by
7737 posts

For me, the second debit card is in case I have a problem with the ATM. Using a debit card instead of a credit card increases the likelihood that something funny will happen with the debit card. I just don't see any reason to use a debit card for purchases. NY Michael, I'm not saying you can't do it - I'm just saying that it makes more sense to use a credit card instead, at least to me.

Posted by
9099 posts

Don't be so defensive Michael, if you want to use a credit card go for it. It's your money after all. Be it credit or debit card if you run into any problems your bank is just a phone call away. It's easy to nip any problems in the butt.

Posted by
7737 posts

Not being defensive. Just offering a different perspective.

Posted by
7129 posts

I used my AmEx card for all of our hotel reservations (through Expcdia) and train reservations for our France trip in July and Italy trip last year. But, when we're there, we have a special debit card not tied to our checking account. Key Bank set up an account where we deposited a set amount of money, and the debit cards have no credit card association and no names imprinted on the cards. We use them exclusively for ATM cash and don't charge anything overseas. So, there's no risk of "surprise charges" after we return and lost cards would be worthless for anyone else to use.

Posted by
3940 posts

My last job, they accepted Amex, but they charge much higher merchant fees, and apparently (according to my bosses) only pay the merchants every 4 mos?! Prob why a lot of places prefer Visa and MC...

Posted by
32523 posts

Amex, ... only pay the merchants every 4 mos?! Either things are much different in Nova Scotia or your bosses were pulling legs. In the UK the fees are a tad higher (although usually with specials as they are trying to break into the mid-market) but deposits are made at the same time as all other card transactions - varies by processor but usually 1 to 3 days. Some schemes run by banks have the deposits instantly or at the end of the day.

Posted by
17 posts

Thanks so much for the great advice! I appreciate your many perspectives before we depart on our trip.

Posted by
2788 posts

I just returned from the month of September in Italy. I had no problems using a debit card tied to a checking account at a local credit union (1% fee) to get cash from ATM machines all over Italy. It does not have a "chip & pin" feature. I go to Europe for a month every summer for the last 10 years and have paid cash for 98% of my purchases. But, I am not a shopper.
Even at places where I stay, I ask if there is a discount for paying cash and more likely than not will get one. I do remember using a credit card to purchase a rug in Turkey 2 years ago. I do take another debit card from another financial institution as back up as well as two credit cards also from different financial institutions. I have only had one problem with plastic in 10 years and that was with a Chase Bank card that told me later that I had not included Ireland on my list of countries to be visited. It was the only country I visited that year. No more Chase.

Posted by
19 posts

We just returned from a month in Italy and had no problems with our debit cards from a small Credit Union. That said, we did have an issue with the amount that we could get from an ATM on a daily basis and the number of swipes per day that we were allowed per card (I am thinking that this was their form of fraud protection). Most of the small B and B's that we stayed at only took cash, so we needed to get more cash on somedays. We called the bank from Cortona and they were able to boost our daily amount so that we could get the cash we needed, and were able to deal with the swipes per day issue by alternating use of our individual cards.

Posted by
192 posts

Capital One and Bank of America master cards do to not chg foreign transaction fees, can be a savings, one problem with debit cards once your cash is gone, unless you have credit arrange, your cash is gone, I agree with some here that credit cards are better except for cash from ATMs have a good trip